Interorganizational Relationships -Relatively enduring resources transactions, flows, and linkages among two or more organizations

Organizational Ecosystem ; system formed by the interactions of a community of organizations and their environment

Companies today may use their strength to achieve victory over competitors, but ultimately, COOPERATION CARRIES THE DAY

Operation roles - Traditional managers are skilled in handling operation roles - Vertical authority - Achieve results through direct control over people and resources Collaborative roles - Managers must be flexible and proactive - Have no direct authority over horizontal colleagues or partners - Achieve results through personal communication

Resource Dep endence Population Ec ology Collaborative Network Institutionalism

When organizations feel resource or supply constraints, they maneuver to maintain their autonomy through a variety of strategies. → For example, One strategy is to adapt to or alter the interdependent relationships. This means purchasing ownership in suppliers, developing long-term contracts or joint ventures to lock in necessary resources, or building relationships in other ways.

An Organization MUST HAVE - Reliable deliveries of high-quality -Reasonably priced supplies & materials -Close relationships with customers To operate efficiently and produce high-quality items that customers need

Supply chain management - Managing the sequence of suppliers and purchasers - Covering all stages of processing from obtaining raw materials to distributing finished goods to consumers Suppliers Manufacturers Distributors Retail Stores

- Absorb more cost - Ship ore efficiently - Provide more services than before, often without a price increase. Small Company Big Company

Power is shifting in other industries. ➀ For decades, technology vendors have been putting out incompatible products and expecting their corporate customers to assume the burden and expense of making everything work together. → ➁ With a unstable economy, big corporations cut back their spending on technology, which led to stiffer competition among technology vendors and gave their corporate customers greater power to make demands.

Traditional Orientation: AdversarialNew Orientation: Partnership Low dependence High dependence Suspicion, competition, arm’s length Trust, addition of value to both sides, high commitment Price, Efficacy, Own profitsEquity, Fair dealing, Both profit Limited information and FeedbackProblem feedback and Discussion Separate resources productionShared resources

–Population : a set of organizations engaged in similar activities with similar patterns of resources or similar customers. –Population-Ecology Theory examines… the environment in which organizations compete a process like natural selection occurs.

Old & Big Organizations → fail New & Small Organizations → survive

Heavy Investment Limited Information Difficulty of changing IRIVERCOWON 2008\ 56 billion\ 43 billion billion111 billion billion91 billion

Heavy Investment Niche Growing Bigger When It’s Successful Organizational Form is an organization’s specific technology, structure, products, goals, and personnel, which can be selected or rejected by the environment. Niche is a domain of unique environmental resources and needs.

VariationSelectionRetention

Niche Struggles for Existence Generalist Specialist - Narrow Area - Move faster and flexible - Broad Area - Adopt to changes

Resource Dependence Population Ecology Collaborative Network Institutionalism

Example: Accounting standards, consultant training Pollution controls, school regulations Reengineering, benchmarking MoralLegal Culturally supported Social basis: Professionalism— certification, accreditation Political law, rules, sanctions Innovation visibility Events: Duty, obligation DependenceUncertainty Reasons to become similar: NormativeCoerciveMimetic

wi-fi hotspots in Cafes, hotels, Airports. Coercive Preference to Suppliers who make their Products more Envrionmentally friendly Normative Recent Application of K-IFRS To accounting Standard

Resource Dep endence Population Ec ology Collaborative Network Institutionalism DissimilarSimilar Organisation Type Organisation Relationship Cooperative Competitive

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